FMCGs Path to Productivity

by Mehak Jaggi

September 27, 2023 | 01 min read


Did you know FMCG companies spend up to 23% of their revenue on trade promotions? Let’s stop and think about that for a moment. The combined sales revenue of the top 50 FMCG companies worldwide is more than $ 1 trillion. This level represents very serious business indeed!

However, a startling revelation is that only 20% of these promotions generate positive ROI, leaving the rest either breaking even or resulting in losses. This highlights the urgency for FMCG companies to embrace a strategic approach to trade promotion management.

Trade Promotion Management (TPM) activities are omnipresent, from enticing consumers in supermarkets with buy-one-get-one-free offers to meal deals designed to lower costs when purchasing multiple items together. This phenomenon is increasingly becoming an omni-channel experience, adapting to consumer habits in local stores, large retail outlets, and online platforms. It involves multiple stakeholders, including finance, planners, field sales, and retailers, making it inherently complex. Without TPM, brands face a host of challenges, like ineffective budget allocation, lack of visibility, limited control of planning, execution inefficiencies, and inaccurate demand forecasting.

Have you elevated your promotion strategy to drive higher sales margins for increased profitability?

With BIZOM TPM, brands can efficiently plan, execute, and track their trade promotions, all while maintaining budget discipline and achieving desired outcomes. Brands can also achieve:

  • Complete Alignment: Align promotions with pricing strategies and goals seamlessly.
  • Optimized Spending: Maximize the impact of promotional spending, ensuring every dollar counts.
  • Targeted Outreach: Reach the right customers with precision, optimizing your outreach efforts.
  • Maximized ROI: Get the most out of your trade spends while optimizing costs for efficiency.
  • Breaking free from Mediocrity: Digitized trade promotions

Connect now to know more about it.

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